04/22/2013

Living Overseas Can Be Taxing – Literally!

Traveling abroad can be
exhilarating enough, but living abroad
comes with a whole other level of excitement … and even some hitches if you
aren’t careful. If you are one of those hopping back and forth across a U.S.
border, beware of the financial hurdles and heightened attention of the IRS.

If you are no stranger to
frequent border traffic, then likely you are aware of the recent adjustments in
IRS practice, not to mention several large developments involving overseas
accounts and income. Essentially, the IRS is on a mission – it wants to capture
more and more overseas accounts and assets taxable under U.S. law. How? By working in sync
with international banking institutions.

Ostensibly, the targets are
tax-evasion type accounts in Swiss banks. In reality, the dragnet is catching a
broader group of individuals and families of all means and intentions. And many
of these individuals and families are unaware that they are targets and even
fewer are aware the rules of the (tax) road.

Bottom line: if you’re going to
be crossing borders regularly, whether for work, for family, or even as part of
your retirement, then this is an important reminder about the hurdles those
little lines on the map can pose if you aren’t careful. Whether you work, live,
or retire abroad, it’s important to be aware of new international complications.